trulia summer 2011 rent vs. buy
DESCRIPTION
Trulia’s Rent vs. Buy Index tracks whether buying a home or renting is less expensive in America’s 50 largest U.S. cities by population. The price-to-rent ratio is calculated using the average list price compared with average rent on two bedroom apartments, condos and townhomes listed on Trulia.com.TRANSCRIPT
![Page 1: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/1.jpg)
Better to Rent or Buy?Summer 2011
![Page 2: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/2.jpg)
Homeownership Beats Renting in 74% of Major U.S. Cities
74%
14%
12%
![Page 3: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/3.jpg)
Top 10 U.S. Cities Where Buying Beats Renting
# City State Price:Rent Ratio
1 Las Vegas NV 6
2 Detroit MI 7
3 Mesa AZ 7
4 Fresno CA 7
5 Arlington TX 8
6 Sacramento CA 8
7 Phoenix CA 8
8 Jacksonville FL 8
9 San Antonio TX 10
10 Tulsa OK 11
![Page 4: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/4.jpg)
Top 10 U.S. Cities Where Renting Beats Buying
# City State Price:Rent Ratio
1 New York NY 36
2 Fort Worth TX 32
3 Omaha NE 27
4 Seattle WA 24
5 San Francisco CA 24
6 Kansas City MO 22
7 Portland OR 20
8 Los Angeles CA 19
9 Boston MA 18
10 Memphis TN 17
![Page 5: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/5.jpg)
Rebounds and Setbacks in Foreclosure Hotspots
• It’s still more affordable to buy in Miami, but a mini-buying boom created by
foreign investors and foreclosure freezes have caused its price-to-rent ratio to
jump by 112% from 6 in January to 13 in July.
![Page 6: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/6.jpg)
Rebounds and Setbacks in Foreclosure Hotspots
• Recent job gains in the auto industry have not countered Detroit’s falling home prices. The city’s price-to-rent ratio has dipped 39% from 12 in January to 7 in July.
![Page 7: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/7.jpg)
Rebounds and Setbacks in Foreclosure Hotspots
• Las Vegas, on the other hand, continues to be the best place to buy instead of rent for the past six months with its price-to-rent ratio remaining consistently at 6.
![Page 8: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/8.jpg)
Rebounds and Setbacks in Foreclosure Hotspots
City State Price:Rent RatioJuly 2011
Price:Rent RatioJanuary 2011 % Change
Miami FL 13 6 112%
Phoenix AZ 8 8 1%
Las Vegas NV 6 6 -7%
Tucson AZ 13 14 -10%
Mesa AZ 7 8 -11%
Sacramento CA 8 13 -17%
Fresno CA 7 11 -32%
Detroit MI 7 12 -39%
![Page 9: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/9.jpg)
Extra! Extra!
INTERACTIVE RENT VS. BUY VISUALCheck out Trulia’s data visual to see how the rent vs. buy debate has changed throughout 2011 in America’s 50 largest cities. http://insights.truliablog.com/vis/rent-vs-buy-q3/
RENT VS. BUY CALCULATORCompare the costs of owning versus renting a home with Trulia’s rent vs. buy calculator to see which option may be a better fit for your financial needs. http://www.trulia.com/mortgage-calculators/06/rent-or-buy/
![Page 10: Trulia Summer 2011 Rent vs. Buy](https://reader035.vdocuments.net/reader035/viewer/2022062418/554e2336b4c90511778b4fbe/html5/thumbnails/10.jpg)
Methodology
Trulia calculated the Summer 2011 price-to-rent ratio for the 50 largest U.S. cities using the median list price compared with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of July 1, 2011.
Sample Price-to-Rent Ratio Calculation:• Median List Price: $140,201.37• Median Rent: $1,871.65• Price-to-rent ratio: $140,201.37 ÷ ($1,871.65 x 12) = 6
Interpretation Key:• Price-to-Rent Ratio of 1-15: Owning a home is much less expensive than renting in this city.• Price-to-Rent Ratio of 16-20: The total costs of homeownership in this city are greater than
the costs of renting, but it might still make financial sense to buy depending on the situation.• Price-to-Rent Ratio of 21+: Renting in this city is much less expensive than owning a home.
Definitions:• Total costs of homeownership include mortgage principal and interest, property taxes, hazard
insurance, closing costs at time of purchase and ongoing HOA dues and private mortgage insurance, where applicable. It also includes an offset for the tax advantages of homeownership, including mortgage interest, property tax and closing cost deductions.
• Total costs of renting include rent and renter's insurance.